MEMORANDUM TO: ALL CLIENTS FROM: MENKE & ASSOCIATES, INC. LEGAL DEPARTMENT DATE: JULY 18, 2001 SUBJECT: NEW “REQUIRED MINIMUM DISTRIBUTION” RULES Depending on the terms of your Plan, participants who are age 70½ or older, are generally required to receive a distribution from the Plan every year. We will refer to this type of a distribution as a “Required Minimum Distribution” or “RMD”. Under the old rules, the annual amount of the RMD was calculated using life expectancy tables, but only after determining the participant’s beneficiary and the beneficiary’s age. In addition, the old rules included a cumbersome election concerning the method of determining the life expectancy. The IRS has recently issued newly proposed rules which adopt a simpler method for calculating the amount of the RMD. In almost all circumstances, one “Uniform Table” will be used for calculating a participant’s RMD. The new calculation rules will no longer consider who ... Read More..